By Edith Orenstein, FEI Financial Reporting Blog - Earlier today, the U.S. Treasury Advisory Committee on the Auditing Profession (ACAP), co-chaired by former SEC chairman Arthur Levitt, Jr. and former SEC chief accountant Don Nicolaisen, voted to publish for public comment its Second Draft Report[2] for a 30 day comment period. The Second Draft Report contains revisions made to the original Draft Report and Addendum, based on testimony received at ACAP meetings and comment letters[3] received. [NOTE: FEI’s Committee on Corporate Reporting (CCR)[4] was among those who filed a comment letter on the original draft report.]

One matter not yet reflected in the Second Draft Report, said Bob Glauber, chair of ACAP’s subcommittee on Firm Structure and Finance, is a statement on litigation reform. Glauber noted that his subcommittee was unable to reach a consensus on that issue, and they will add to the draft report “a fair and balanced statement of the various views on litigation reform.”

Separately, ACAP co-chair Don Nicolaisen noted at the end of the meeting that one of the observers on ACAP, SEC Deputy Chief Chief Accountant Zoe-Vonna Palmrose, is leaving the SEC at the end of this month to return to academia. (Palmrose taught at USC prior to joining the SEC as Deputy Chief Accountant in 2006.)

We will post further details from today’s Treasury ACAP meeting in a summary on FEI’s website[5].